THE BOARD OF PENSION AND HEALTH BENEFITS PENSION SECTION. Report Number One

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1 THE BOARD OF PENSION AND HEALTH BENEFITS PENSION SECTION Report Number One A. The Board of Pension and Health Benefits requests that the South Carolina Annual Conference fix $691 per service year as the rate for annuity payments to retired ministers. (This rate was $677 for the year 2011.) This shall include service annuity credits approved prior to January 1, An eligible surviving spouse shall receive 75% of the formula benefit upon the death of the participant. B. The Board of Pensions requests that direct billings to salary paying units be made to give the Board of Pension and Health Benefits (The Pension Fund), $6,365, for the pension program of the South Carolina Annual Conference for the fiscal year ending December 31, 2012, and that this sum be apportioned or billed to the charges of the South Carolina Annual Conference. C. Resolutions Relating to Rental/Housing Allowances for Active, Retired or Disabled Clergypersons of the South Carolina Annual Conference The South Carolina Annual Conference (the Conference ) adopts the following resolutions relating to rental/housing allowances for active, retired, or disabled clergypersons of the Conference: WHEREAS, the religious denomination known as The United Methodist Church (the Church ), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church ( Clergypersons ); WHEREAS, the practice of the Church and of this Conference was and is to provide active Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation; WHEREAS, pensions or other amounts paid to active, retired, and disabled Clergypersons are considered to be deferred compensation and are paid to active, retired, and disabled Clergypersons in consideration of previous active service; and WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as the appropriate organization to designate a rental/housing allowance for Clergypersons who are or were members of this Conference and are eligible to receive such deferred compensation; NOW, THEREFORE, BE IT RESOLVED: THAT an amount equal to 100% of the pension or disability payments received from plans authorized under The Book of Discipline of The United Methodist Church (the Discipline ), which includes all such payments from the General Board of Pension and Health Benefits ( GBOPHB ), during the year 2010, 2011, and 2012 by each active, retired, or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and THAT the pension or disability payments to which this rental/housing allowance applies will be any pension or disability payments from plans, annuities, or funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity, or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active, a retired, or a disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church, general agency of the Church, other institution of the Church, former denomination that is now a part of the Church, or any other employer that employed the Clergyperson to perform services related to the ministry of the Church, or its predecessors, and that elected to make contributions to, or accrue a benefit under, such a plan, annuity, or fund for such active, retired, or disabled Clergyperson s pension or disability as part of his or her gross compensation. NOTE: The rental/housing allowance that may be excluded from a Clergyperson s gross income in any year for federal income tax purposes is limited under Internal Revenue Code section 107(2) and regulations there under to the least of: (1) the amount of the rental/housing allowance designated by the Clergyperson s employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year; (2) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (3) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year. D. For 2012, each institution, organization or district to which a minister is appointed and enrolled shall pay to the South Carolina Annual Conference Board of Pension and Health Benefits an amount equal to $578 per month for Full Time Equivalent for the Defined Benefit portion of the Clergy Retirement Security Plan (CRSP) for clergy (including deacons) who are under Episcopal appointment (receiving compensation) at a local church, charge, conference or conference-responsible unit or entity related to the South Carolina Annual Conference. (This rate was $578 per month for the year 2011.) An amount equal to 3.0% of the appointed participant s

2 Plan Compensation shall be paid for the defined contribution portion of the CRSP. An amount equal to 3.0% of the appointed participant s Plan Compensation, limited by 200% of the Denominational Average Compensation shall be paid for Comprehensive Protection Plan funding or other benefit plan. Such payments shall be made for each minister so appointed, and paid monthly in equal payments each month during the year 2012, or in advance for monthly crediting in twelve equal installments from deposits made in the Deposit Account of the South Carolina Annual Conference with the General Board of Pension and Health Benefits, by the treasurer of the South Carolina Annual Conference. In the event that monthly credits to the minister in appointment s Church Account exceed the funds deposited for the minister in special appointment, an interest charge made at 12% per annum shall be made. This interest payment is due the following month with interest charges on a daily factor until the institutional account of the minister under appointment is current. For the purposes of this section, the Bishop and the Cabinet have established the following for guidelines as to the full or part time status of an appointment to determine FTE status by working quarters: a. Full time appointments are assumed to be full time in service. Defined Plan Compensation cannot be less than the 2012 CPP and Health Benefits threshold of $37,669. b. Three Quarter time (3/4) for members means Plan Compensation is no less than 60% of the DAC (the CPP and Health Benefits threshold of $37,669). Service time is no less than 35 hours per week. Paid vacation time is limited to three weeks annually. c. One half time (1/2) for members means Plan Compensation is no less than 40% ($25,112) of the DAC, service time of no less than 28 hours per week. Paid vacation time is limited to two weeks annually. d. One quarter (1/4) time for members means Plan Compensation is no less than 20% of the DAC ($12,556). Service time of no less than 15 hours per week. Paid vacation time is limited to one week annually. e. Part-time local pastor (3/4) means Plan Compensation is no less than 60% of the DAC (Health Benefits threshold of $37,669). Service time is no less than 35 hours per week. Paid vacation time is limited to three weeks annually. f. Part-time local pastor (1/2) means Plan Compensation is no less than 30% of the Annual Conference Average Compensation ($20,759). Half time local pastor means service can be no less than 20 hours per week with two weeks paid vacation. g. Part-time local pastor (1/4) means Plan Compensation is less than $20,188 (30% of the Annual Conference Average Compensation). Service time can be less than 20 hours per week with one week paid vacation. E. The fiscal year of the Board of Pensions shall be the same as that of the South Carolina Annual Conference. F. The Board of Pension and Health Benefits authorizes one time moving expense reimbursement grants, not to exceed $1,500, and including up to $350 in verified packing expenses, for newly incapacitated ministers receiving CPP Incapacity Benefits, surviving spouses of ministers or newly retired ministers in benefit, moving from the parsonage provided by the charge. Persons moving must file for the one time reimbursement grant not later than 90 days after first reception of pension or disability benefits and may use the funds for moving expenses and/or for connection/tap on or hook up fees in the new residence. Report Two 2012 Pension and Welfare Operating Budget Requirement 2011 Budgeted 2012 Estimated Past Service Payment Clergy Retirement Service Plan (CRSP) Defined Benefit Amount 4,143, ,143, CRSP Defined Contribution (3%) 1,315, ,315, CRSP CPP (3%) or Benefits Funding 1,298, ,298, Clergy Transition* 154, , Grants/Contingency* 30, , Total Estimated Requirement 6,942, ,942, Estimated Income **UM Publishing House 0 0 Institutional Payments 391, , Apportionment* 184, , Direct Bill Payments 6,365, ,365, Total Estimated Income $6,942, $6,942,485.00

3 *Amount to be apportioned Clergy Transition* 124, , Grants/Contingency* , TOTAL APPORTIONED PENSIONS $154, $154, * To be apportioned **The Bishops have asked that Jurisdictional Conference Publishing House Distributions be directed to Central Conferences to fund pension programs. Report Three South Carolina Annual Conference Funding Plan For Supplement One to the Clergy Retirement Security Program A. As of January 1, 2009, for 2011 The 2011 Past Service Rate (PSR) is $677, or.98% of the Conference Average Compensation (CAC). We expect future Past Service Rates to increase by an average of less than 2% per year. As of January 1, 2009 for 2011, assuming 2% annual Past Service Rate increases, the General Board of Pension and Health Benefits actuarial valuation of the plan for the Conference shows more assets than benefit obligations. The funding plan is summarized below: Current Plan Funding $ 70,381,330 Supplement One Liability (64,063,179) A PSR Increase of 2.0% Funding Surplus as of January 1, 2009 $6,318,151 Ratio 110% Assuming 7.0% interest and the RP 2000 Mortality Table B. As of January 1, 2010, for 2012 The 2012 Past Service Rate (PSR) is $691, or 1.00% of the Conference Average Compensation (CAC). We expect future Past Service Rates to increase by an average of less than 2% per year. As of January 1, 2010 for 2012, assuming 2% annual Past Service Rate increases, the General Board of Pension and Health Benefits actuarial valuation of the plan for the Conference shows more assets than benefit obligations. The funding plan is summarized below: Current Plan Funding $ 81,242,390 Supplement One Liability (63,643,717) A PSR Increase of 2.0% Funding Surplus as of January 1, 2010 $17,598,673 Ratio 128% Assuming 7.0% interest and the RP 2000 Mortality Table Herman B. Lightsey, Jr., Chairperson Sherry Eisom, Secretary THE BOARD OF PENSION AND HEALTH BENEFITS GROUP INSURANCE SECTION Report Number One The insurance program of the South Carolina Conference is designed to provide its eligible employees (as defined herein), and their eligible dependents, with a comprehensive plan for major medical benefits and a Medicare supplement. The following are eligible for coverage under the program: 1. Those fully employed and funded by a local church either as Elders in Full Connection, Deacons in Full Connection, Associate Members, Full Time Local Pastors, Provisional Elders, Provisional Deacons, Provisional Deacons/1992, Diaconal ministers related to and serving a local church within the South Carolina Annual Conference and included in the Hospitalization and Medical Expense Program Adoption Agreement. 2. Ministers who are full time employees of and funded by the Annual Conference boards, councils or agencies. 3. District Superintendents. 4. Students appointed as full time local pastors appointed to and funded by a charge within the boundaries of the Annual Conference and actively at work. 5. Lay persons who are full time employees of and funded by the Annual Conference.

4 6. Retired clergy who have been under full time appointment to a local church with pension responsibility by the South Carolina Annual Conference, and who are immediately eligible to receive pension or incapacity benefits, and who have participation in the active group health plan of the South Carolina Annual Conference, the last ten (10) years of which were continuous and consecutive, shall be eligible for participation in the retiree health care program of the Annual Conference. 7. Retired lay employees who have attained age 62 and have been full time employees of the South Carolina Annual Conference or a local church of the South Carolina Annual Conference, and who are immediately eligible to receive United Methodist pension or incapacity benefits, and who have participation in the active group health plan of the South Carolina Annual Conference, the last ten (10) years of which were continuous and consecutive, shall be eligible for participation in the retiree health care program of the Annual Conference. 8. Those retired clergy or incapacitated employees, referred to herein as lay persons, immediately eligible to receive pension or disability benefits from the General Board of Pension and Health Benefits at the beginning of the month following the month in which the retired relation or disability leave with disability benefits takes place, and who had a minimum of ten (10) continuous and consecutive years of active participation in the South Carolina Annual Conference group health plan at the time of retirement or the granting of Basic Protection Plan incapacity benefits by the General Board of Pensions, and their respective spouses. 9. Ordained ministers from other United Methodist Annual Conferences and ordained ministers from other Methodist denominations, and other denominations, under Episcopal appointment fully employed and funded by a local church or charge of the South Carolina Annual Conference under the provisions of Paragraphs and of the 2008 Book of Discipline. 10. Full-time employees, and their eligible dependents, enrolled and funded by a local church of the South Carolina Annual Conference currently meeting the underwriting guidelines of the South Carolina Annual Conference group insurance plan. The salary-paying unit must establish the funding basis with the Annual Conference on the current advanced premium. 11. Funding for the group insurance plans upon retirement in benefit from the South Carolina Annual Conference shall be based on full time employment by the Annual Conference, full time appointment to a local church or eligible extension ministry with pension responsibility by the South Carolina Annual Conference, and shall be based on the following schedule: 10 continuous years of appointment and participation in the active plan 0% 11 continuous years of appointment and participation in the active plan 10% 12 continuous years of appointment and participation in the active plan 20% 13 continuous years of appointment and participation in the active plan 30% 14 continuous years of appointment and participation in the active plan 40% 15 continuous years of appointment and participation in the active plan 50% 16 continuous years of appointment and participation in the active plan 60% 17 continuous years of appointment and participation in the active plan 70% 18 continuous years of appointment and participation in the active plan 80% 19 continuous years of appointment and participation in the active plan 90% 20 continuous years of appointment and participation in the active plan 100% The categories of eligibility 1 11 listed above are categories of access to the group insurance plan of the South Carolina Annual Conference. Funding of persons, other than those appointed as pastors or with pension funding responsibility by the South Carolina Annual Conference, is the responsibility of the salary-paying unit. Report Number Two Major Medical Insurance Benefits During the year 2011, the South Carolina Conference Board of Pension and Health Benefits (the Board) has reviewed options for providing health benefits for both eligible lay employees and clergy and current and future retirees under the health plan. After review of these options, the Board recommends the following: The South Carolina Annual Conference has elected to participate in Health Flex, the managed health care plan of the General Board of Pensions and Health Benefits of the United Methodist Church. The South Carolina Annual Conference has elected for active HealthFlex BlueCross/BlueShield Option B750 HealthFlex Pharmacy Plan P2 as the Standard Health Care Plan. The yearly health plan deductible is $750 individual and $1,500 for family. Plan design changes are listed below: Service 2011 Co-Pay 2012 Co-Pay Emergency Room $50 $200 Urgent Care $50 $100

5 The P2 Pharmacy Plan is described below: Plan Feature Retail Pharmacy Benefit Medco By Mail (Mail Order Benefit) (30 days supply) (90 days Supply) Annual Deductable Does Not Apply Does Not Apply Annual Out-of-Pocket $2,500 per person $2,500 per person (OOP) Maximum $5,000 per family $5,000 per family Generic Drugs (Tier 1) $12 co-payment $20 co-payment Preferred Brand-Name 25% co-payment 25% co-payment Drugs (Tier 2) Minimum $30; maximum: $45 Minimum $40; Maximum $120 Non-Preferred Brand-Name 30% co-payment 30% co-payment Drugs (Tier 3) Minimum $30; Maximum $90 Minimum $75; Maximum $225 Prescription Non-Sedating 30% co-payment 30% co-payment Antihistamine Drugs (e.g., Minimum $30; Maximum $90 Minimum $75; Maximum $225 Zyrtec, Allegra and Clarinex) Retail Refill Allowance (RRA) Members will be allowed to obtain three fills of maintenance medication at the retail pharmacy. For all subsequence fills at the retail pharmacy, participants will be responsible for paying 100% of the discounted cost. To maximize plan benefits, refills for most maintenance medications will require fulfillment through the Medco by Mail Pharmacy Program. The South Carolina Annual Conference has elected to offer an additional plan designated as a Consumer Driven High Deductible Plan (CPHP) as an optional health plan if the participant should chose to elect. The Consumer Driven High Deductible is described below: HealthFlex Plan Design Change Consumer-Driven Health Plan (CDHP) Summary Purpose of a Consumer-Driven Health Plan The CDHP will be a health insurance plan that combines a higher deductible with a participant health reimbursement account (HRA). An HRA is a tax-exempt employer-provided health care expense account that works somewhat like a flexible spending account (FSA), but is funded with employer dollars. The participant is able to use HRA funds to pay for out-of-pocket health care expenses up to a certain limit each year, and may roll unused amounts forward to subsequent years. The participant is protected from catastrophic medical expenses by the same out-of-pocket maximum plan design of a high-deductible health plan. The plan engages covered individuals as health care consumers, incenting and supporting individuals in making informed decisions regarding their utilization of health care services based on necessity, quality and cost of care. This includes selecting health care providers, managing their health expenses and utilizing wellness programs to improve their health. Key Benefits of a CDHP Shift in participant behavior with respect to utilization of health care services Engaging participants as more active consumers and owners of their health and health care utilization Provides participants greater control and flexibility in managing their utilization of health care services All of above resulting in greater potential for improved participant health and mitigation of plan cost trend. Key Plan Design Features Base plan is a $2,000 individual ($4,000 family) deductible PPO plan (C2000), combined with pharmacy (Rx) coverage that is not subject to the deductible (Medco Rx Plan P2). HRA is funded at $1,000 ($2,000 for family). The HRA reimburses all eligible items covered by a flexible spending account (FSA) that are not covered by the participant s CDHP benefit design. Only out-of-pocket medical, pharmacy and behavioral health expenditures are eligible for the HRA. Pharmacy is not subject to the $2,000 deductible; first-dollar coverage for pharmacy (subject to the regular co-pays/coinsurance of the P2 benefit design); coinsurance can be reimbursed from the HRA. There will be no changes in FSA-eligible covered services under the plan [IRS Code 213(d)] FSA to pay first, because these are participant dollars subject to the use-it-or-lose-it rule; then the HRA pays for HRA-eligible services.. Remaining HRA dollars can roll over from year to year; no HRA rollover limit. HRA balances forfeit upon termination of employment (other than eligible retirement).

6 HRA balances at the time of retirement may become a retiree account that may be used to offset retiree health care expenses, regardless of whether or not the participant is in a HealthFlex Medicare companion plan. The lifetime maximum coverage for each eligible insured and eligible dependent shall be limited to $3,000,000. The South Carolina Annual Conference will participate in the Healthflex incentive program in Details of this plan are available on the General Board of Pension and Health Benefits website under the Heathflex tab which describes the current incentive program. A participant and covered spouse could earn incentives up to $300 under this plan. Additionally, all participants and covered spouses are urged to complete the HealthQuotient risk assessment prior to August 31, Failure to do so will result in an additional $250 deductible for each during the 2012 plan year. Additional information on the major medical expense plan is available from the Board of Pension and Health Benefits, Post Office Box 3787, Columbia, SC Report Number Three Medicare Benefits The South Carolina Annual Conference has elected HealthFlex Medicare Plan 2 and HealthFlex Pharmacy Plan P2 as the Medicare Supplement Plan Option. The P2 Pharmacy Plan is described below: Plan Feature Retail Pharmacy Benefit Medco By Mail (Mail Order Benefit) (30 days supply) (90 days Supply) Annual Deductable Does Not Apply Does Not Apply Annual Out-of-Pocket $2,500 per person $2,500 per person (OOP) Maximum $5,000 per family $5,000 per family Generic Drugs (Tier 1) $12 co-payment $20 co-payment Preferred Brand-Name 25% co-payment 25% co-payment Drugs (Tier 2) Minimum $30; maximum: $45 Minimum $40; Maximum $120 Non-Preferred Brand-Name 30% co-payment 30% co-payment Drugs (Tier 3) Minimum $30; Maximum $90 Minimum $75; Maximum $225 Prescription Non-Sedating 30% co-payment 30% co-payment Antihistamine Drugs (e.g., Minimum $30; Maximum $90 Minimum $75; Maximum $225 Zyrtec, Allegra and Clarinex) Retail Refill Allowance (RRA) Members will be allowed to obtain three fills of maintenance medication at the retail pharmacy. For all subsequence fills at the retail pharmacy, participants will be responsible for paying 100% of the discounted cost. To maximize plan benefits, refills for most maintenance medications will require fulfillment through the Medco by Mail Pharmacy Program. Eligible retired participants and their eligible dependents as well as active participants and their eligible dependents that have attained age 65 shall have benefits calculated by the Medicare Companion approach. This assumes eligible participants and dependents shall be enrolled in Medicare Part A and Part B immediately prior to reaching the age and status for Medicare eligibility. A handbook explaining the provisions of Medicare is available from any district office of the Social Security Administration. Report Number Four Administrative Procedures Enrollment in HealthFlex, the group insurance plan of the South Carolina Annual Conference, must be made within the first thirty days of eligibility or the first day actively at work. Late enrollment or enrollment for January 1 st of any year must be completed with the General Board of Pension and Health Benefits prior to November 30 th of the preceding year Eligibility requirements are also set forth in the HealthFlex Administrative Manual published by the Health Care Division of the General Board of Pension and Health Benefits of the United Methodist Church, 1201 Davis Street, Evanston, IL Billing: At the first of each month, the Board of Pension and Health Benefits will send premium statements to the participants enrolled in the Conference Insurance Program and to participants with Flexible Spending

7 Accounts. Payments for group health premiums and Flexible Spending Accounts premiums shall be made on a monthly basis. At the first of each month, the Board of Pension and Health Benefits will send direct billing for the salary paying units share of premiums relating to the participants enrolled in the Conference Insurance Program. These payments should be made on a monthly basis. Cancellation of Coverage: It is imperative that each participant in the Conference Insurance Program keeps his/her premium payments current. The Board of Pension and Health Benefits has instructed the benefits administrator to cancel the insurance coverage or the Flexible Spending Account of any participant who does not pay his/her premium by the end of the month for which he/she has been billed. Ministers Serving in Eligible Extension Ministries: It is required that all Conference Boards and Agencies, served by ministers and others eligible for group insurance participation, pay for the "institutional share" of the insured's premium. This provision shall apply to the District Superintendents, Conference Staff and those serving United Methodist agencies for whom the South Carolina Annual Conference has pension responsibility. In every case the full cost of the group health premium must be paid by the insured, the employer, or through the combined payments of the insured and the employer. Premium payments shall be made in accordance with the instructions printed on the quarterly "Statement of Account". Premium payments are due at the first of the month for which the participant is billed. Applications for enrollment in the Conference Insurance Program are available from the Board of Pension and Health Benefits, P.O. Box 3787, Columbia, SC The change enrollment form must be completed and in the hands of the benefits administrator within 30 days from the date of eligibility. If not, the applicant will be ineligible until the next following enrollment period. The Board of Pension and Health Benefits is charged with oversight of the group insurance program of the South Carolina Annual Conference, the benefits of which program are outlined in the reports of the Board submitted to the Annual Conference. The Annual Conference approves the group insurance budget of the Board of Pension and Health Benefits. The Board is authorized to negotiate and contract with carriers or the Hospitalization and Medical Expense Program Administrator to maintain the level of benefits for the eligible participants, as defined by the Annual Conference. The group health plan of the South Carolina Annual Conference (Conference Plan) shall be the plan of first refusal for covering dependents of clergy appointed to local churches in the Conference. Where covered clergy wish to cover their dependents, the local church will seek to cover such dependents through the Conference Plan, rather than purchasing outside health insurance. Local churches may be excused from this requirement in cases where such dependents may be covered through the employer of a covered clergyperson s spouse, or through a governmental plan, such as an SCHIP, and in cases of demonstrable financial hardship. Report Number Five Group Health Insurance Operating Budget Requirements 2011 Budgeted 2012 Estimated Active Group Participant Only 2,463, ,463, Participant + Spouse 1,929, ,929, Participant + Child 166, , Participant + Children 90, , Participant + Family 2,661, ,661, Total Estimated Active Group 7,310, ,310, Retired Group Medicare Eligible Sub Group Participant 1,046, ,046, Participant +1 1,404, ,404, Participant less Part D Medicare 13, , Total Estimated Medicare Eligible 2,464, ,464, Total Retired and Active Groups 9,774, ,774, Other Incapacitation/Transition 194, , Mandatory Coverage Charge 229, , Total Estimated Other 424, , Total Estimated Requirement 10,198, ,198,944.00

8 Estimated Income Billing to salary Paying Units 5,117, ,117, Apportioned to Churches* 1,603, ,603, From Insured 2,223, ,223, From Medicare Participants 1,427, ,427, From Institutional Payments 311, , Total Estimated Income 10,682, ,682, Amount to be Apportioned Incapacitated and Transitional Funding * 194, , Retiree Group Costs 1,603, ,603, Total $1,797, $1,797, * Apportioned to churches, see Note 2 below. Report Number Six 2012 Group Health Costs The Board of Pension & Health Benefits makes the following recommendation for action by the 2011 South Carolina Annual Conference. 1. That the sum of $5,117,163 be billed to the local church charges and salary paying units for the Conference Insurance Program in The Board of Pension and Health Benefits requests an apportionment of $1,952,536.00: a. $ 154, for Transitional Pension Funding b. $ 194, for incapacitated and/or suspended participants. c. $1,603, for retiree Group Medicare Supplement. 3. That participant premium payments be set as follows: a. Standard personal group insurance premiums for eligible active clergy/survivor/conference lay employee categories shall be approximately 30% of the total coverage premium. 1. Effective January 1, 2012, the participant only premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $ per month. 2. Effective January 1, 2012, the participant plus spouse premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $1, per month. 3. Effective January 1, 2012, the participant plus child premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $ per month. 4. Effective January 1, 2012, the participant plus children premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall $1, per month. 5. Effective January 1, 2012, the participant plus family premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $1, per month. The total premium shall be $1, per month. b. Medicare Supplement premiums for eligible fully funded participants shall be approximately 30% of the rate; this is expected to be $ per month per individual effective January 1, The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month per individual. The total premium of individual coverage shall be $ per month c. Consumer Driven High Deductible Plan (CDHP) premiums for eligible active clergy/survivor/conference lay employee categories shall be 30% of the single or family coverage premium. 1. Effective January 1, 2012, the participant only premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $ per month. 2. Effective January 1, 2012, the participant plus spouse premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be

9 approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $1, per month. 3. Effective January 1, 2012, the participant plus child premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $ per month. 4. Effective January 1, 2012, the participant plus children premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be approximately 70% of the rate. This is expected to be $ per month. The total premium shall be $1, per month. 5. Effective January 1, 2012, the participant plus family premium shall be approximately 30% of the rate; this is expected to be $ per month. The salary paying unit share shall be 70% of the rate. This is expected to be $1, per month. The total premium shall be $1, per month. 4. In accordance with previous action of the Annual Conference and the Board of Pension and Health Benefits, retired participants and their eligible dependents shall have the Annual Conference contribution for group health premiums limited to the lesser of the employer contribution to the Medicare Companion Plan or the percentage indicated in the funding schedule found in Report One, item Active participants attained age 65, serving salary paying units that would otherwise quality for a Small Employer Medicare Secondary Payer Exemption, and their eligible dependents, shall have the Annual Conference contribution for group health premium limited to the lesser of the employer contribution to the Medicare Companion Plan or the percentage indicated in the funding schedule in Report One, item The estimated 2012 monthly group health insurance premiums for persons with negotiated service, compensation and benefits, Deacons in Full Connection employed full time, full time Diaconal Ministers and full time Lay Employees of local churches, are expected to be: For the standard plan - $ monthly ($7, yearly) for participant only coverage, $1, monthly ($16,632.00) yearly for Participant plus spouse coverage, $ monthly ($11, yearly) for Participant plus child coverage, $1, monthly ($15, yearly) for participant plus children coverage, and $1, monthly ($22, yearly) for Participant plus family coverage. The estimated 2012 monthly group health insurance premiums for persons with negotiated service, compensation and benefits, Deacons in Full Connection employed full time, full time Diaconal Ministers and full time Lay Employees of local churches, are expected to be: For the CONSUMER Driven High Deductible Plan - $ monthly ($7, yearly) for participant only coverage, $1, monthly ($16, yearly) for Participant plus spouse coverage, $ monthly ($10, yearly) for Participant plus child coverage, $1, monthly ($14, yearly) for Participant plus children coverage, and $1,832 monthly ($21,984 yearly) for participant plus family coverage Enrollment must be made within 30 days of new hire status, or 60 days prior to January 1, Herman B. Lightsey, Jr., Chairperson Sherry Eisom, Secretary